With homeowner's insurance policies, the premium can be prorated down to the day. When the policy is canceled, the insured is charged for the days that there was coverage and given a refund for any days of premium that are not used. In many states, charging a cancellation fee for an essential policy like a homeowner's policy is illegal. In others, insurers may charge a fixed fee or 10% of the remaining premium.
If you think you are not being refunded the correct amount after canceling a homeowner's insurance policy, you should first call back the company and ask for a breakdown of the billing. If you are still not satisfied, you can then contact the insurance commissioner in your state and ask for a review of your case. This is a legal body that exists for the purpose of ensuring that insurance companies follow the insurance laws in their state.
Also, go online and check insurance laws for the state where the policy is canceled to learn more about how quickly the refund must be sent. People who feel that they have not gotten enough back from their policy after it has been canceled need to contact the authorities in their state and have it investigated.